Tewari warns Punjab debt may reach Rs 4.47 lakh crore

The Story in Brief

Congress MP Manish Tewari has warned that Punjab’s debt could reach Rs 4.47 lakh crore by the end of 2026-27, up from Rs 15,250 crore in 1996. He blamed populist spending by successive governments, rejecting the view that the debt is mainly linked to militancy. Tewari said debt servicing was about Rs 43,194 crore in 2025-26, while around Rs 28,755 crore in interest payments could consume 23% of revenue receipts. He also cited a debt-to-GSDP ratio of 46.6% as of March 31, 2025, second only to Arunachal Pradesh, and said just 5.6% remained for capital expenditure after obligations.

The Indian Opinion

The loudest narratives are that one party alone caused Punjab’s debt, or that every fiscal problem can be pinned on freebies. Tewari’s own account points to spending choices across successive governments, but his figures are political claims and include a future debt estimate. The useful test is whether the next budget reduces interest’s share of revenue, protects capital spending and slows the debt-to-GSDP ratio below 46.6%.

Source: businesstoday.in

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